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http://hdl.handle.net/10419/48496
  
Title:Inverting the regulatory rules? Optimizing airport regulation to account for commercial revenues PDF Logo
Authors:Evangelinos, Christos
Püschel, Ronny
Goldhahn, Susan
Issue Date:2011
Series/Report no.:Diskussionsbeiträge aus dem Institut für Wirtschaft und Verkehr 1/2011
Abstract:This paper analyzes the role of commercial revenues in today's airport regulatory system. We find that the current regulatory regime only partially achieves core aims such as welfare maximization. After highlighting instances in which airport price regulation is not economically justified, we explore the potential for airports to exercise market power in the commercial sector. In certain circumstances, we advocate the introduction of an 'inverted' dual till system under which commercial as opposed to aviation revenues are the focus of price regulation. The suitability of such a system varies from airport to airport, however, depending on various factors, such as the airport's competitive environment and the presence of capacity constraints.
Subjects:Airport regulation
non-aviation revenues
price differentiation
single till
dual till
Document Type:Working Paper
Appears in Collections:Diskussionsbeiträge aus dem Institut für Wirtschaft und Verkehr, TU Dresden

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